“Horrible Things” Slink Back Into Zynga
techcrunch.com
techcrunch.com
lol, sure, I believe them...
Where I used to work, we used to be instructed to crawl the net for obscure videos that we could pirate and resell as our own. If anyone ever called us on it, we were to fein ignorance and say we didn't realise they weren't original, and 'remove them immediately'.
So yeah, I believe they really didn't realise they were in their testing queue, sure...
(This, incidentally, happened to me quite recently. Customer A went over to her sister-in-law's house to play some bingo. She set her sister in law up with a trial account, and her sister and law printed some cards in color. Customer A was not pleased that she had paid for the software and couldn't print in color, but her sister (who hadn't) could.)
But these ads are everywhere online. I still don't get the selective outrage against FB apps. I'm not defending the ads, but I scratch my head about the selection of this venue for advertising them in particular. I mentioned it before and maybe I'll let it drop now, but people running rebills and very questionable ads are on Google sponsored results right now. Want some diet pills? http://www.google.com/search?q=acai+berry
If a small % of your ads are scammy, it's unlikely that you will get that much attention. Similarly, it's unlikely that you intentionally are allowing those ads when they make up a relatively small revenue stream.
On the other hand, if they account for significant revenue and you have the CEO talking on camera about these ads, something is wrong and you should get heat. The Google CEOs are usually talking about getting rid of these ads(not so much because of moral reasons as because they are not that desperate for revenue).
The FTC/various AGs have gone after some of the people running the acai ads, but I think the bigger problem is the rebills in general. There will always be a new ringtone, grant offer or diet pill to slap a rebill on.
Anyway, I guess I'm not ranting about it.
My guess is that they made sure to clean up the first service so that it looks legit, and you only discover that it's a scam if you actually go through with it, and if you do, they're just piling on the cash-grabs. I cannot imagine that any of the following services are aware that the user came from a game and that some virtual currency should be credited back.
So the results of this story is that they're going to clean up the second set of services so it looks legit when you're two steps removed, and then pile on the cash-grabs, hoping no-one digs that deep.
It is also really important to remember that the biggest beneficiaries of these scams are the mobile networks themselves. If you've ever worked with mobile payments you know that they always take more than half of the money. Payout rates average at 45% throughout the world. Compare that to other payment methods such as PayPal which charges 6%, or roll your own solution and get down to 3%.
It's a cash machine for all the networks, they have no liability, almost no costs for the transactions, and they still get the lion's share of the money, so they have absolutely no incentive to stop the scammers.
So attacking this problem only from the Facebook side is probably not as effective as if you could force the networks to get rid of the scammers, but I have no hope of that ever happening, all the money they're making on it can buy a lot of lobbying to keep that money rolling.